BEIJING—China will tap one of its top banking officials to help set up a development bank focused on the world's biggest developing nations, according to a government official, demonstrating China's interest in creating a new source of funding like the World Bank and the International Monetary Fund.

Beijing is expected to assign China Development Bank Corp. Chairman Chen Yuan to lead the country's efforts to set up a bank that would serve the so-called Brics nations of Brazil, Russia, India, China and South Africa, the...